American Ship Building Company v. National Labor Relations Board

In American Ship Building Company v. NLRB, 380 U.S. 300 (1965), the Supreme Court emphasized that it has consistently construed Section 8(a)(3) of the National Labor Relations Act to leave unscathed a wide range of employer actions . . . even though the act committed may tend to discourage union membership. Id. at 311. The Court explained such a construction of 8(a)(3) is essential if due protection is to be accorded the employers right to manage his enterprise. Id. Although both discrimination and a resulting discouragement of union membership must be shown under Section 8(a)(3), the Court observed that it has long been established that a finding of violation . . . will normally turn on the employers motivation. Id. In American Ship Building Co. v. NLRB, 380 U.S. 300, 85 S.Ct. 955, 13 L.Ed.2d 855 (1965), the Court expressly reserved the question whether an employer engaged in a bargaining lockout may hire temporary replacements "for the sole purpose of bringing economic pressure to bear in support of its legitimate bargaining position," id. at 318, 85 S.Ct. at 967, i.e., apart from any other business justification. In American Ship Building, the Supreme Court held that "an employer violates neither Sec. 8(a)(1) nor Sec. 8(a)(3) of the National Labor Relations Act when, after a bargaining impasse has been reached, he temporarily shuts down his plant and lays off his employees for the sole purpose of bringing economic pressure to bear in support of his legitimate bargaining position." 380 U.S. at 318, 85 S.Ct. at 967. Thus, the Court concluded, a lockout is unlawful under the Labor Act only if motivated by antiunion animus. In American Ship Building Company v. National Labor Relations Board, 380 U.S. 300, 85 S.Ct. 955, 13 L.Ed.2d 855 (1965), the Supreme Court held that a lockout by an employer used as a means of bringing pressure on his employees in support of his bargaining position does not violate Section 8(a)(3) and (1) unless there exists a supportable finding of unlawful intent on the part of the employer to injure a labor organization or to evade his duty to bargain collectively, or to discourage union membership.